There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

We also dig into their paystubs on a deep level. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

You are very clearly leveling up your game quickly!

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

My 2 cents: it sounds like you've got to pick a lane and stay in it, become an expert, and level up in that lane.

Giovanni, Congrats on deciding to go to the next level. 

There are several out there that I am aware of that are taxed at rates which are currently lower than ordinary income rates. 

Generally they are not rolled into the loan, and it's more the level of fees (say the percentage) they charge rather than any "junk" fees or costs.